Dangote Sugar Refinery Plc has staged an impressive financial recovery after posting a profit before tax of N20.6 billion in its unaudited first-quarter 2026 results. The strong rebound comes after the company recorded a N22.6 billion loss during the same period in 2025.
The latest performance signals renewed momentum for one of Nigeria’s leading consumer goods companies as easing production costs helped restore profitability despite lower revenue. Investors are now watching closely to see if the turnaround can continue through the rest of 2026.
Revenue for the quarter stood at N187.7 billion, down from N213.9 billion a year earlier. However, the drop in sales did little to weaken earnings because the company sharply reduced its cost of sales to N144.6 billion from N204.6 billion. That improvement significantly widened profit margins.
The company’s popular 50kg sugar bags remained the biggest revenue driver, contributing 97 percent of total turnover. Retail sugar sales added 2.5 percent, while molasses and freight income made up the balance.
Across Nigeria, Lagos remained Dangote Sugar’s biggest market with N101 billion in sales. Northern Nigeria followed with N70.5 billion, while the West generated N11.7 billion. The East contributed N4.4 billion.
Gross profit surged to N43.1 billion, representing a remarkable year-on-year increase of more than 365 percent. In addition, other income jumped to N9.4 billion from just N143.1 million, largely supported by exchange gains.
Operating profit also climbed sharply to N45.7 billion compared with N2.7 billion in the first quarter of 2025. After finance costs and fair value adjustments, profit before tax settled at N20.6 billion.
Profit after tax reached N19.1 billion, reversing the N23.6 billion loss posted a year earlier. Earnings per share improved strongly to N1.58 from a negative N1.95, highlighting stronger shareholder value creation.
On the balance sheet, total assets stood at N926.2 billion, down from N1.04 trillion. Property, plant and equipment remained the company’s largest asset class at N638.4 billion. Total liabilities also declined to N778.1 billion, suggesting some improvement in financial pressure.
Although accumulated losses remained elevated at N170.6 billion, the figure improved from N189.7 billion recorded in December 2025. That movement may encourage investors looking for sustained recovery signs.
The stock market has not yet shown a major reaction since the results were released on April 30, 2026. Still, Dangote Sugar shares remain up 20.55 percent year-to-date on the Nigerian Exchange, trading at N69.70 per unit.
Analysts say the company’s ability to control raw material costs and defend margins could shape its performance for the rest of the year. If current trends continue, Dangote Sugar may emerge as one of Nigeria’s strongest consumer stock comeback stories in 2026.
